What is a subordinated bond?

A bond is a negotiable debt instrument for a loan taken out by a company. If a company needs money for an investment, for example, it can obtain the necessary financing by issuing a bond loan.

The buyer (investor) of the bond receives an interest payment. There is no repayment pressure during the term, repayment takes place at the end of the term. The subordination increases the company's guarantee capacity and improves its financing ability. Issuing subordinated bonds can be a good alternative to issuing share certificates.

Benefits

  • Subordination improves the guarantee capacity

  • The company is less dependent on the bank

  • No dilution of equity interests

  • Extra publicity, new customers and ambassadors

Benefits according to the European Commission

  • Listed companies grow faster in turnover and personnel on average than non-listed companies

  • Reduced dependence on financiers

  • Easier access to equity and debt financing

  • Better brand recognition and public company recognition

Assumptions

Your company has existed for at least 3 years, of which at least 1 year has been profitable.

There is a solid organization, the continuity of which is guaranteed.

DThe minimum financing via the NPEX regular Bond is € 1.500.000 (would you prefer a lower amount? Take a look at our Growth Bond)

“8 reasons to finance your business through a subordinated loan bond"

download white paper

Examples of financing

  • The growth of your company

  • Obtaining (additional) working capital

  • Investments in sales and marketing

  • Investments in hardware and software

  • Investments in qualified personnel

  • Refinancing existing loans (partially)

  • Shareholder buyout (partial)